Intel and Pat Gelsinger have entered into a “severance agreement” , according to which the now former CEO will receive a significant amount of money. We're talking at least $10 million, according to a report filed by the company with the US Securities and Exchange Commission (SEC).
According to the “contract termination agreement” Gelsinger is entitled to severance pay equal to 18 months of base salary, which is $1.875 million, plus an additional $5.16 million. Both payments will be made over 18 months through the salary fund.
The third component of the compensation will be 11/12 of the 2024 annual bonus that would have been paid to Gelsinger had he not resigned a month before the end of the year -- another $3.15 million, but the final payment depends on the performance of the company and is made in the presence of additional conditions.
So Gelsinger will receive almost $10 million. In comparison, WeWork founder Adam Neumann received $400 million. upon his dismissal, and former Yahoo CEO Marissa Mayer's compensation in 2016 was $54 million.
In early August, the company announced poor financial results and showed a net loss of $1.6 billion, despite a profit of $1.5 billion a year earlier. As a result, Intel was forced to cut 15%. employees or 15,000 people to reduce costs.
Gelsinger led the company for almost four years - he was temporarily replaced by Intel CFO David Zinsner and Chief Product Officer Michelle Johnston Holthouse. The CEO was faced with a choice: to resign voluntarily or by decision of the board of directors.
The board has now formed a committee to determine his permanent successor. Intel's stock jumped briefly after Gelsinger's resignation was announced, but soon returned to its original value.